Vanguard's 25th "How America Saves" Reveals a Quiet Retirement Revolution

The 25th annual report analyzes the retirement behaviors of nearly five million American workers and indicates savers are in a stronger position than ever.
Participation in retirement plans reached a record 86% of eligible employees, up from 65% over the period covered by the report series.
Nearly two-thirds of plans now default participants at a 4% or higher automatic enrollment rate, with about one-third defaulting at 6%.
Approximately 70% of participants use professionally managed allocations, and employer matching contributions rose to a record 4.7%.
The average participant savings rate reached an all-time high of 12.1% in 2025, with 45% of participants increasing their savings rate during the year.
Account balances rose 13% year over year, while only 5% of participants traded during periods of market volatility.
The report notes increased hardship withdrawals, signaling ongoing gaps in short-term financial resilience that require additional participant support solutions.